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February 14, 2024 4 min read

With the escalating impacts of climate change becoming increasingly clear, businesses are under pressure to reduce their carbon footprint. This urgency is exemplified by the European Union's decision to mandate Environmental, Social, and Governance (ESG) reporting for large companies starting in 2024, including the measurement of Scope 3 emissions. 

In the UK, the Department for Energy Security and Net Zero (DESNZ) has also launched a Call for Evidence to gather feedback on the benefits of Scope 3 greenhouse gas (GHG) emissions reporting in the UK, indicating a similar decision may also be implemented in the UK.  

Yet there is often confusion around what Scope 3 emissions are, and how they can be reported.

So, what are the current regulations around ESG reporting and Scope 3 emissions, and how can See.Sense data help?

What are Scope 3 Emissions? 

Scope 3 emissions are emissions resulting from the activities of assets not owned or controlled by the reporting organisation, but that the organisation indirectly affects in its supply and production chain. (einride, 2023).

In simpler terms, Scope 3 emissions covers a wide range of areas such as processing of sold goods, transporting products for delivery, business travel, energy usage in office buildings, and, crucially, employee commuting. 

Often, these emissions represent a company’s largest source of emissions (GGP, 2023), but they can be difficult to quantify.

Because of this, gathering accurate data on your scope 3 emissions is crucial for meeting ESG reporting standards. 

The Legal Requirements for Scope 3 Emissions Reporting 

In the EU, the Corporate Sustainability Reporting Directive (CSRD) requires, or will in future require, most companies to track and report on their ESG emissions under EU law.

In 2024, this comes into effect for the largest EU companies - those with over 500 employees - as well as banks and insurers. Over the coming years, this will gradually widen to include a much greater number of EU companies and EU subsidiary companies: 

  • 2024: Public Interest Entities, Listed EU Companies with 500+ employees. 
  • 2025: Companies that meet ⅔ of the following requirements: 
    • More than 250 employees 
    • €40 million in turnover 
    • €20 million in total assets
    • This will cover around 50,000 European companies as well as more than 10,000 non-EU companies and their European subsidiaries.
  • 2026: Listed small and midsize companies  - there is a provision allowing small and midsize enterprises to opt-out until 2028.
  • 2028: non-EU parent companies with €150 million annual revenues in the EU and at least one subsidiary or branch in the EU that conducts significant business.

Under the CSRD, companies will be required to report on Scope 1, Scope 2 and Scope 3 Emissions, as well as report on how they plan to reduce these emissions. 

In the United Kingdom, ESG reporting is less stringent. The Companies Regulations 2022 (CR22) Act requires mandatory climate-related financial disclosures including:

  • Descriptions of how the company manages climate-related risks
  • Descriptions of actual and potential impacts of climate-related risks on the company's model

This CR22 applies to all UK public companies with more than 500 employees, or private companies with a turnover of more than £500 million.

However, current evidence points to a move towards stricter ESG reporting requirements in the coming years. 

As mentioned, the Department for Energy Security and Net Zero (DESNZ) has launched a Call for Evidence to gather feedback on the benefits of Scope 3 greenhouse gas (GHG) emissions reporting in the UK. 

How Does The See.Sense Commuter Platform Help Employers And Employees With Their Cycle To Work Schemes? 

The See.Sense Commuter Platform helps companies track their Scope 3 commuting emissions, whilst also helping to reduce these emissions by encouraging employees to cycle. 

The See.Sense Commuter Platform

  • Helps employees save time and money, improve their overall health, and reduce their carbon footprint by commuting by bike, all while knowing they have our See.Sense smart lights to keep them seen on the roads. 
  • Aids employers who benefit from healthy employees, cut costs, and lower and track their scope 3 emissions for environmental reports thanks to See.Sense smart light data. 
  • It’s also a win for the governing bodies of the places that people are cycling in, to and from, as the See.Sense smart lights help to collect data on cycling in the area that can be accessed under licence to provide data driven insights that improve local infrastructure and conditions for cycling. 

When employers implement a See.Sense Commuter Platform into their cycle to work schemes, as we’ve seen above, it benefits everyone. 

Here’s the breakdown - See.Sense provides award winning smart-bike lights that keep employees safe whilst commuting and give them access to personalised Ride Stats, as well as a host of other features such as Theft Alerts and Crash Alerts via our innovative See.Sense App. Meanwhile, the smart lights collect data on usage and CO2 emissions, as well as information regarding close passes, areas of dangerous road and areas of efficient cycling infrastructure. 

In doing so, businesses unlock a data dashboard that can be utilised for mandatory environmental reporting and employee engagement programmes. Meanwhile, data gathered about city infrastructure is fed back to participating cities so that they can improve their local areas, improving the cycling experience for everyone. 

Monitoring Behaviour Change with See.Sense Travel Survey 

Importantly, the See.Sense Commuter Platform also goes beyond targeting existing cyclists in your company. As part of the platform, you gain access to our Travel Survey, which  identifies potential cyclists within your workforce who are yet to embrace cycling as their mode of commute. 

By creating a baseline of current cycling activity, employers can gauge the impact of their initiatives year on year. The See.Sense Travel Survey offers personalised insights into employees' commuting habits, reasons for not cycling, and incentives that could drive the shift to cycling. This seamless integration with our Commuter Platform provides a holistic approach, empowering businesses to make informed decisions and cultivate a cycling culture within their organisation. 

Get in touch to learn more!